$NVIDIA (NVDA.US)$ is extending the competition for AI infrastructure from chips to optical fibers.
On May 6, NVIDIA and Corning reached a multi-year commercial and technology partnership. Under the agreement, Corning will build three advanced manufacturing plants in North Carolina and Texas, dedicated to producing optical connectivity solutions for NVIDIA, creating over 3,000 high-paying jobs.
NVIDIA invested $500 million to obtain $Corning (GLW.US)$equity subscription rights,securing two immediately exercisable warrants (to purchase up to 3 million shares at $0.0001 per share and up to 15 million shares at $180 per share). Following this news, Corning’s stock price surged more than 12% overnight.
This is not a one-off bet by NVIDIA but rather a long-planned industry-wide acquisition spree:
In just a few months, NVIDIA has invested $2 billion each in Lumentum and Coherent, securing core production capacity for photonic chips and optical modules. Similarly, Meta previously committed up to $6 billion to support Corning’s expansion. The concentrated moves by tech giants send a very clear signal:The capital race around 'optical communication' is undergoing a qualitative leap!
Reading this, astute fellow investors have likely already sensed an opportunity:
🎯In-depth Analysis:Why is NVIDIA making a major bet on Corning?
🗺️Investment Landscape:Who’s in NVIDIA's 'circle of friends'?
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